PRESS DIGEST - Financial Times - June 8

Financial Times

CITY OF LONDON PROPERTY SLUMP FIRST TO REACH.

According to the annual Money into Property report from consultancy DTZ, the fall in the value of City of London offices has been so severe that it is now the only real-estate hub that offers a good deal for international investors. The report, which covers 38 countries across Europe, Asia-Pacific and the Americas, reveals no other office market has seen as swift an adjustment in price that would make sense for investors. It adds that the outlook for international property investment remains bleak, with no respite from plunging values.

SUGAR SAYS HE WILL BE NEUTRAL ADVISER

On Sunday, Sir Alan Sugar criticised Prime Minister Gordon Brown's tax policies and pleaded ignorance over the meaning of a "Labour whip". Sugar admitted accepting a Labour-endorsed peerage, but denied joining the government, claiming he was "politically neutral". He said: "All I am is an adviser, I'm not a policymaker . I wouldn't join the government. I don't see this as a political thing." Sugar also said Brown's top tax rate was excessive.

LDV TO APPLY FOR ADMINISTRATION

LDV, the beleaguered vanmaker based in Birmingham, will apply to a court for administrators to be appointed on Monday after a rescue deal collapsed, putting thousands of jobs at risk. The group, which is owned by GAZ of Russia, could have its assets sold quickly, ending any last-minute hopes of saving the business. Managers issued a final appeal to the government on Friday to help save the company. They warned that 4,000 jobs were at risk after the rescue deal headed by Malaysia's Weststar collapsed.

LAST-DITCH TALKS OVER TUBE STRIKE

Vital negotiations to avert a crippling strike by thousands of London Underground workers in a row over pay and jobs will take place on Monday. The Rail, Maritime and Transport union is threatening travel chaos for millions of commuters and visitors to the capital. Richard Parry, LU interim managing director, said: "There is no reason for the RMT leadership to continue to call for strike action." John Morgan-Evans, of the union Unite, said: "We have formally informed London Underground that we are in a dispute and want to see a substantially better offer if action is to be averted."

WOMEN WIN EQUAL RIGHTS PAY DEAL

Dozens of low-paid women workers gained equal pay pension rights on Sunday at a public school following a legal battle that lasted ten years. The ruling against the two Haberdashers' schools for boys and girls in Monmouth, Wales, will see more than 150,000 pounds paid out to the part-time workers, who were previously denied access to the school's pension scheme. The women told an Employment Tribunal in 1998 that the school was discriminating against them because of their sex.

MANDELSON SET TO DELAY ROYAL MAIL STAKE SALE

Lord Mandelson will press ahead with the part-privatisation of Royal Mail, but will stress that a sale will be delayed if bids fall short of expectations. The Business Secretary is planning to highlight the importance of market conditions improving before a sale can proceed, in a nod to the masses of Labour MPs determined to vote against the bill. However, it is understood that the change of tone still fails to go far enough to satisfy the demands of Labour rebels.

BNY MELLON JOINS BGI RACE

BlackRock (BLK.N) was scrambling on Sunday night to see off an 11th-hour challenge from Bank of New York Mellon (BK.N) for the purchase of Barclays Global Investors(BARC.L). It is expected that Barclays will decide on who should buy the BGI unit early this week. Although BlackRock is still considered the most probable buyer, BNY Mellon could step in if it fails to come up with an attractive price within the next few days. Last month, BNY Mellon chief executive Bob Kelly said the bank's acceptance of government money under the troubled asset relief programme did not preclude it from making acquisitions.

HORNBY TO TAKE HELM AT ALLIANCE BOOTS

Former HBOSHBOS.L chief executive Andy Hornby is set to become the chief executive of Alliance Boots. The move could enable him to restore his reputation after it was badly damaged when HBOS came to the brink of collapse last year. Alliance Boots confirmed Hornby was "a leading candidate" in its search, and an announcement on his appointment could come as early as next week.

CRUNCH TIME FOR SETANTA AMID FINAL WHISTLE FEARS

The board of sports broadcaster Setanta will gather on Monday to decide on the troubled company's fate. According to sources, the board will assess whether Setanta could continue as a going concern and added there was a risk that administrators could be brought in within the coming days. According to Enders Analysis, the research group, Setanta's annual operating losses in its UK business amount to roughly 100 million pounds ($160.5 million). The broadcaster has been negotiating with private equity groups in an effort to raise up to 100 million pounds after it failed to hold on to all its rights to show Premier League football matches.

CAMBRIDGE ENDOWMENTS BUOY PARTNERS

Partners Capital, the wealth manager, has signed up three new Cambridge college endowments in the past few weeks. Its success means the London-based group now runs money for a league-leading 12 Oxford and Cambridge colleges as well as Eton, Insead business school and the Royal Academy of Arts. Stan Miranda, founder and chief executive, said: "Investment managers are among the worst about managing their own assets. You always put yourself at the bottom of the queue. I decided to put myself at the top of the queue."

Prepared for Reuters by Durrants ($1=.6232 Pound)